2014 - 2015 Cloud-Based Contact Center Infrastructure Market Report

The seventh edition of DMG Consulting's Cloud-Based Contact Center Infrastructure Market Report provides an in-depth analysis of all aspects of this dynamic and highly competitive IT sector. Renowned worldwide as the foremost analysis of this market, the 537-page Cloud-Based Contact Center Infrastructure Market Report gives contact center and IT managers the vendor, product, functional, technical, operational and pricing information they require to determine if they should acquire a cloud-based solution and, if so, which one is the best fit. This Report also provides insights into worldwide adoption, market trends and challenges, analyzes market activity, reviews customer satisfaction with vendors, and offers implementation best practices to help users realize the greatest continuing return on their cloud investments.

The contact center infrastructure market has been around for a long time and includes many mature IT sectors that address the mission-critical needs of contact centers. Never before have we witnessed an all-out rebirth of an entire industry due solely to a new delivery model. This is what the cloud has done for the contact center. No longer is robust, flexible, innovative technology only for those with deep pockets and large operations. The cloud has literally changed the way companies interact with their customers, simply by making world-class technology accessible to any company regardless of size, location, budget or IT expertise. The cloud's innate flexibility, scalability, ease of use and cost-savings potential are really just the beginning - and vendors and users alike agree. DMG estimates there are nearly 150 cloud-based contact center infrastructure vendors vying for users' dollars, validating the cloud trend and making this a vibrant and extremely competitive market. Never before has there been such fervent entry into a market by existing and new vendors alike. The best part of this story is that all of this activity results in vendors racing to build differentiated solutions that deliver real value, giving buyers unprecedented choice and leverage in negotiating purchases.

From a small user base of just 269,000 in 2008, the cloud-based contact center infrastructure market has picked up momentum year after year. Seats grew by 12.8% in 2013. While that rate is down significantly from the 32.5% jump in 2012, there is so much more to the big picture. DMG has never seen this market in a stronger position, or vendors executing more effectively. The slower adoption rate is a positive sign of market maturity - of vendors actually being able to track and delineate sales of these solutions more accurately than ever before - rather than a market slowdown.

Now, a decade and a half after the debut of cloud-based contact center solutions, end users have become comfortable with leveraging them in critical service organizations. Many prefer these solutions to traditional on-premise alternatives, due to the obvious financial benefits and flexibility, and the fact that regular upgrades and ongoing innovation are available without geographical restrictions or any additional burden on internal IT resources. No longer having to worry about the operational and IT details of the technology they use, companies are better able to focus on differentiating their customer experience and reducing customer effort, which is what drives long-term success.

Large contact center infrastructure vendors and emerging stand-alone solution providers alike are bringing innovative, reliable, robust cloud-based contact center infrastructure solutions to market. There are many marketing messages to sift through, and numerous options for users to adopt cloud solutions as they look to replace outdated technology or add new functionality to their contact centers and back-office environments. As a result, DMG advises prospective buyers to conduct thorough due diligence when evaluating cloud-based contact center infrastructure solutions. To aid in this process, DMG conducts an independent survey to measure end-user satisfaction with cloud-based contact center infrastructure vendors and their products, service, support, professional services, training and innovation. This study evaluates the performance of the eight leading and contending vendors analyzed in detail in the 2014-2015 Cloud-Based Contact Center Infrastructure Market Report. This year, the majority (61.5%) of satisfaction scores for all vendors in the 12 major categories surveyed - product, implementation, system availability/uptime, professional services, training, ongoing service and support, system upgrades, product innovation, responsiveness to product enhancement requests, communication, product pricing, and the customer's overall satisfaction level with the vendor/solution - fell into the highly satisfied range (4.0 to 4.66). 31.2% of the average ratings were in the satisfied range (3.0 to 3.95); 5.2% were in the somewhat satisfied range; and 2.1% were completely satisfied. The full results of the customer satisfaction study are available in the Report, and are helpful for prospects who are trying to differentiate the vendors and their offerings.

DMG expects adoption of cloud-based contact center infrastructure solutions to continue, and predicts that the number of cloud-based seats will grow by 20% in 2014 and 2015, 18% in 2016 and 2017, and 16% in 2018. Although the percentages are expected to decrease, the number of new contact center infrastructure seats is expected to grow every year during this time period. Users should be aware that market consolidation is likely and will occur over the next several years, as there are too many vendors competing to meet the current market demand.

Benefits and return on investment (ROI) from using cloud-based contact center infrastructure solutions

Discussion of the multi-channel/omni-channel contact center imperative, with tactical and practical guidance and best practices

Review of the critical role of automatic call distributor (ACD) and customer relationship management (CRM) systems in contact centers, and how to leverage the synergies of these solutions to drive intelligent and personalized customer interactions

Discussion of the increasing importance of outbound activities, and analysis of the outbound capabilities of leading and contending cloud-based contact center infrastructure solutions

Thought-provoking presentation of how analytics-empowered solutions enhance the multi-channel customer journey and how they will shape the contact center of the future

A look at how cloud-based contact center infrastructure solutions are opening up a wide range of possibilities and options for small and mid-sized organizations that do not have big budgets for technology or the staff to support it

Company, financial, strategy and product overviews of the 12 leading and contending vendors

In-depth review and side-by-side comparative analyses of the key functional and technical capabilities of the 8 leading and contending speech analytics solutions

Best practices for implementing and managing a cloud-based contact center solution

Comprehensive vendor satisfaction analysis that provides deep insights into all aspects of the products and vendor/customer relationships

Detailed pricing analysis for leading and contending vendors

Detailed company reports for 12 leading and contending cloud-based contact center infrastructure providers, analyzing their products, functionality and future product development plans

Cloud-Based Contact Center Infrastructure Vendor Directory

Report Highlights:

There has never been a better time to consider the cloud: The cloud-based contact center infrastructure market is more active than ever, with nearly 150 vendors competing for user attention. The intense competition is driving innovation, and is presenting buyers with far more choices and the opportunity to structure very favorable deals when acquiring this technology.

Although seat growth appears to have slowed, the big picture tells another story of a maturing market (finally) : The cloud-based contact center infrastructure market has grown rapidly during the past few years. Seats grew by just 12.8% in 2013 (down from 32.5% in 2012), but the real story is exciting. This market has never been stronger, solutions are becoming mainstream, and vendors are consistently executing their plans. The drop in adoption actually signifies market maturity, ushering in a time where vendors can track and delineate sales of these solutions more accurately and with increased focus and transparency, due to their growing importance to the market and the companies that use them.

Due diligence is key for users in the buying process: Buyers have unprecedented choice, with the option to acquire cloud-based solutions from large, established contact center infrastructure players, carriers or newer and more flexible vendors. The key to making the best choice is to conduct thorough due diligence - dissecting vendor messaging and promises; carefully checking and testing the functionality by examining DMG's Report and requesting demonstrations and possibly conducting a pilot; checking vendor satisfaction ratings; and then obtaining references from other users. The customer satisfaction survey portion of this Report is designed to aid users in this process.

Continued growth is certain: DMG predicts cloud-based contact center seats will grow by 20% in 2014 and 2015, 18% in 2016, and 2017 and 16% in 2018. Although the percentages are expected to decrease, the number of new contact center infrastructure seats is expected to grow every year. (DMG's estimates are almost always conservative, and there are many factors that could drive this IT sector to grow much more rapidly.)